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Nash Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $4,953,300 on January 1, 2017. Nash expected to complete the building by December 31, 2017. Nash has the following debt obligations outstanding during the construction period.

Construction loan- 12% interest, payable semiannually, issued December 31, 2016		$ 2,015,500
Short-term loan- 10% interest, payable monthly, and principal payable at maturity on May 30, 2018		1,609,200
Long-term loan- 11% interest, payable on January 1 of each year. Principal payable on January 1, 2021		990,400

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Assume that Nash completed the office and warehouse building on December 31, 2017, as planned at a total cost of $ 5,173,700, and the weighted-average amount of accumulated expenditures was $ 3,830,300. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers to 0 decimal places, e.g. 5,275.)

Avoidable Interest

$

Compute the depreciation expense for the year ended December 31, 2018. Nash elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $ 297,500. (Round answer to 0 decimal places, e.g. 5,275.)

Depreciation Expense

$

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